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Leonard F.S. Wang and Jen-yao Lee
''Partial Privatization, Foreign Competition, and Tariffs Ranking''
( 2010, Vol. 30 No.3 )
This paper compares the optimal tariff and revenue maximizing tariffs in the presence of partial privatization. We show that in an international mixed oligopoly with asymmetric costs and partial privatization, when the marginal cost of the privatized firm exceeds a critical value, maximum -revenue tariff is higher than optimum-welfare tariff. Otherwise, optimum-welfare tariff is higher than maximum-revenue tariff. In addition, associating with the market-opening policy, the domestic government should accelerate privatization path and impose a lower welfare-optimum tariff rate.
Keywords: mixed oligopoly, partial privatization, tariff ranking
JEL: F1 - Trade: General
L2 - Firm Objectives, Organization, and Behavior: General
Manuscript Received : Jul 07 2010 Manuscript Accepted : Sep 16 2010

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